Death or Disability During Term Clause Samples

The 'Death or Disability During Term' clause defines what happens if a party to the agreement dies or becomes disabled while the contract is still in effect. Typically, this clause outlines whether the contract will terminate automatically, continue with the party’s estate or representatives, or if certain obligations are excused or modified due to the incapacity. For example, in an employment or service agreement, it may specify that salary payments cease upon death, or that the employer may terminate the agreement if the employee is unable to perform due to disability. The core function of this clause is to provide clarity and certainty for both parties by addressing how unforeseen personal events like death or disability impact contractual obligations, thereby reducing potential disputes.